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Stull, D. D., M. J. Broadway, and D. Griffith. In the food service sector, consumers pay for experiences and convenience as well as food; several of the chain operations operate on a global scale. Agricultural injury. View our suggested citation for this chapter. Economic returns to manufacturing companies and their investors are larger than in most other sectors partly because this sector has relatively high concentration through merger and acquisition and global markets. Journal of Nutrition 132(4):719-725. Kinsey, J. The effect of income question design in health surveys on family income, poverty and eligibility estimates. http://www.fns.usda.gov/snap-food-security-depth-interview-study (accessed November 24, 2014). POTENTIAL SOCIAL AND ECONOMIC EFFECTS ON U.S. CONSUMERS, Perhaps the primary indicator of social and economic success in any food system is the ability to provide a population with an abundant supply of affordable, safe, high-quality, and nutritious food. Most sales are made in metropolitan areas, and in the Northeast and on the West Coast (Tropp, 2014). 2010. 2014. "When farmers thrive, our business thrives its not something extra," she said. society, from a subsistence-livelihood household to the global community. This amount is only 0.06 percent of the total edible food listed in Figure 2-2, but it provides more than 3 billion meals per year. The average earnings of $25,600 is 114 percent of the U.S. poverty level for a single person in 2014 and almost equal to the poverty level of $23,850 for a household of four people (HHS, 2014). CBPP (Center on Budget and Policy Priorities). Spencer, et al. http://www.ers.usda.gov/amber-waves/2005-february/farm-programs,-natural-amenities,-and-rural-development.aspx#.VKvZCXtWeT9 (accessed January 6, 2015). American Journal of Industrial Medicine 38(4):463-480. Volpe, R. 2013. One third of Americas food with an economic value of US$161 billion is wasted and less than 7% is The Global Food Security Index (GFSI), created by the Economist Intelligence Unit in 2012, is a measure of food security across the three dimensions of affordability, availability, and use (quality and safety) that integrates 27 indicators.4 Measured by the GFSI, Asia/the Pacific and sub-Saharan Africa are the areas with the most food insecure people, by numbers and concentration, respectively (Economist Intelligence Unit, 2014). All rights reserved. Implementation of food taxes or subsidies may promote healthier and a more sustainable diet in a society. Wise. Thus, analysts have used regression techniques to look at food consumption patterns and food choices/purchases/sales with numerous variables that may or may not include price and. Commercial fishing safety. Washington, DC: U.S. Department of Agriculture, Economic Research Service. A large body of literature has documented unequal access to health care by individuals who live in rural areas (Murray et al., 2006; Probst et al., 2007; Syed et al., 2013). 2012. It is time to recognise this colossal scale of waste and take appropriate action that not only benefits humanity but the environment as well. This study estimates the effects of a tax (15% or 30%) on meat and a subsidy (10%) on fruit and vegetables (F&V) consumption in the Netherlands using a social cost-benefit analysis with a 30-year time horizon. Geiser, K., and B. J. Rosenberg. King, R. P., M. Anderson, G. DiGiacomo, D. Mulla, and D. Wallinga. Applied Economics 44(26):3379-3389. Lowenstein, G. 2013. The insecure citizenship and immigration status of many farm workers often results in a lack of economic and political power and leaves them vulnerable to exploitation (Hall and Greenman, 2014). LaVeist, T. A. Areas with good soils, favorable climatic conditions, and well-developed agribusiness infrastructure have seen more rapid consolidation in farming and concentration of high-value production systems. Profits on grocery store sales are traditionally stated as 2 percent, meaning they operate at very small margins (FMI, 2013). The U.S. Census reports 14,487 food processing and manufacturing companies, including 1,510 meat and 421 poultry companies, 3,097 beverage companies, 2,813 bakeries, 1,798 fruit and vegetable preserving companies, 1,007 dairy firms, and 4,050 soft drink manufacturers in 2011 (U.S. Census Bureau, 2014). Amber Waves 10(4):1-6. 1991. Umberger, W. J., and D. M. Feuz. Food insecurity is determined by multiple variables. Dimitri, C., and L. Oberholtzer. There are numerous factors that challenge food production. Fruits and vegetables are approximately 35 percent of all organic food sales, and the preponderance is fresh produce (OTA, 2014). Union members2013. The social context of occupational and environmental health. United States farmworker fact sheet. In addition, the assumptions used to calculate food stamp benefits do not account for changes in other expenditures, such as those for housing, that have increased considerably over past decades, resulting in less money available to purchase adequate diets. Beginning in the 1950s, the growing presence of women in the workforce and other social and cultural changes created a demand for foods that would be easy to acquire and convenient and quick to prepare. http://www.sodexofoundation.org/newsletter/pdf/economic_cost_of_domestic_hunger.pdf (accessed November 22, 2014). 2010. b Differences between 2012 estimates and estimates from prior years reflect changes in survey methodology and implementation associated with the 2012 Agricultural Resource Management Survey in addition to changes in the economic situation of farm households. Alaimo, K., C. M. Olson, and E. A. Frongillo. Farm workers and immigration policy. Researchers know that rural communities that rely most heavily on farming for their local economic base are more likely to experience economic stagnation and population declines (Isserman et al., 2009). 2005. Agricultural work may increase their risk of injury, illness, and exposure to toxic chemicals. "Authentic brands take stands on values and educate consumers," Giloth said. POTENTIAL SOCIAL AND ECONOMIC EFFECTS ON THE FOOD PRODUCTION SECTOR, Income, Wealth, and Distributional Equity. Economic returns to public agricultural research. 729 million metric tons of wheat are produced annually and production continually increases. Washington, DC: U.S. Department of Agriculture, Economic Research Service. Farmers from racial and ethnic groups that are historically underrepresented in farming have also shifted in recent years. Sexton, R. J. Daily G. Food Production, Population Growth, and the Environment. Structure of the sector Due in large part to price competition from big box stores, stores in this sector have been consolidating to adapt to information and transportation technologies that allow them to minimize in-store inventories. This list does not include privately held companies in any industry, but it serves to compare food firms to firms in other U.S. industries. A more thorough discussion of the methods needed to comprehensively explore the effects of the food system is presented in Chapter 7. The Food and Agricultural Policy Research Institute maintains a proprietary econometric partial equilibrium simulation model that is used to generate detailed price and market forecasts based on current policy and market conditions (Meyers et al., 2010). This book provides a contemporary overview of the social-ecological and economic vulnerabilities that produce food and nutrition insecurity in various small island contexts, including both high islands and atolls, from the Pacific to the 2007. Table 1101. Food Facts The Pear Essentials & How Green are our Apples: A look at the environmental and social effects of apple and pear production (1999) Have you bottled it? 2008. In the most recent IFIC survey (IFIC, 2014a), the importance of healthfulness as a factor affecting food and beverage purchases increased significantly over the prior 2 years. 2014. and local levels. Peoples likings for specific foods are largely learned. The usefulness of experimental auctions in determining consumers willingness-to-pay for quality-differentiated products. Journal of Community Health 38(5):976-993. Under the NIOSH portfolio, the Agriculture, Forestry, and Fishing sector has a number of strategic goals to guide research and partnership efforts targeting priority areas, including traumatic injury and hearing loss (CDC, 2014b). http://www.cdc.gov/niosh/topics/youth (accessed February 11, 2014). Andorka, R. 1987. Journal of the American Statistical Association 92(440):1268-1278. Two measures of the performance of companies are size and profitability. consumption depend on multiple variables. More impressive is the fact that this growth in output has occurred with relatively little increase in the total combined use of factor inputs (capital, labor, purchased inputs) (Wang and Ball, 2014). FIGURE 5-2 Index of use of different farm inputs by type in the United States, 1948-2011. The social and economic effects and differences that result from education, occupational working conditions, income, or other factors are closely tied to where people live (LaVeist et al., 2011). Marion, B. W. 1986. The distribution of wages across all of these types of workers varies according to their skills, the alternative market for their skills, and where they are located in the country. What are the impacts on worker well-being? Levels of income, wealth. 2007Census volume1, Chapter 1: U.S. nationallevel data. By far the largest number of workers is found in the retailing and food service sectors, where annual average earnings tend to be low. The average age of U.S. farmers has risen from 50 in 1978 to 58 in 2012, and a diminishing fraction of U.S. principal farm operators are younger than age 35 (see Figure 5-5) (USDA, 2014b). HPSA designation criteria. 2011. This sector includes individually owned restaurants, mid-priced chains, quick service (fast food) establishments, hotels, and beverage establishments. Food miles. Further analysis of data on food insecurity by the Economic Research Service found that three national-level economic measureschanges in unemployment, inflation, and the price of foodaccounted for 92 percent of the year-to-year variation in the national prevalence of food insecurity from 2001 to 2012 (Nord et al., 2014). Non-American citizens cannot obtain insurance under the ACA, and because the food system employs so many undocumented immigrants, they will remain part of the uninsured population (NILC, 2014). 2010. The 2012 Census of Agriculture estimated 3.2 million self-described operators on the nations 2.1 million farms (USDA, 2014b). He states that several economic reports assign most of the increase in obesity over that time to the increase in calorie intake that resulted from the change in prices (Lowenstein, 2013). Food prices affect food access and choices, so they are hugely important to the food system. These techniques provide insight into the degree of correlation that exists among variables, such as specific nutrient consumption and age, gender, or location. Found inside Page 741Although the environmental problems of the food industry always have existed, ecological and social impacts of development (Sharma and Ruud 2003). Seattle Global Justice. For example, in the highly consolidated meat and poultry industry, the processors/manufacturers can wield both monopsony and monopoly power. Washington, DC: U.S. Department of Agriculture, Economic Research Service. Sometimes complications of the upstream supply chain complicates the pay question. Diabetes Care 35(2):233-238. have high occupational injury rates, which are partially attributed to the number of injury hazards in food service establishments (e.g., slippery floors and use of knives and cooking equipment) (CDC, 2014c). Annual Review of Sociology 13:149-164. Food insecurity is associated with chronic disease among low-income NHANES participants. 2021 National Academy of Sciences. FIGURE 5-12 Consumer Price Index for food. Seligman, H. K., E. A. Jacobs, A. Lopez, J. Tschann, and A. Fernandez. Access to affordable health insurance through the ACA (Patient Protection and Affordable Care Act). Food insecurity in households with children: Prevalence, severity, and household characteristics. The global food industry is worth billions of dollars, yet this wealth often isnt shared fairly with frontline farmworkers. 2014. http://www.agcensus.usda.gov/Publications/2012 (accessed February 11, 2014). Juster, F. T., and J. P. Smith. Because they have relatively small and less diversified economies, rural communities are more affected by changes in local business or employment opportunities. https://www.drought.unl.edu/Education/DroughtforKids/Drought Furthermore, consumers make more. Communities Because community social and economic well-being is influenced by a wide range of factors, it is often difficult to link community outcomes with the presence or absence of any single business or firm. TV watching and Sit Time. http://www.hsph.harvard.edu/obesity-prevention-source/obesity-causes/television-and-sedentary-behavior-and-obesity (accessed November 24, 2014). ERS. Lyson, T. 2004. Food manufacturers that are producing the products are skilled in selling them under various private labels to mitigate competition from other private store labels. Found inside Page 2An acceleration of the conversion of NRL to agricultural production would bring significant social impacts . The demand for additional housing , utilities 2011. Organic agriculture and the global food supply. Gasson, R., and A. J. Errington. They cater to the tastes of their particular customers and are often leaders of food innovation. 1995. American Journal of Agricultural Economics 92(2):376-402. Goldschmidt, W. 1978. These inputs include seeds, chemicals, equipment, animal health services, animal breeding/genetics, financing, and information needed for modern commercial farming. BLS. Which subsectors of the food system will gain or lose? Although a full description of these databases and the extent of the cuts is beyond the scope of this section, several databases that include important metrics for assessing agriculture and food systems are being reduced in length, changing methodology for sampling, or increasing time between data collection, all as part of cost-saving measures. Economic Information Bulletin No. On average, higher-income individuals live longer and are healthier than are lower-income individuals (Deaton and Paxson, 2001). They involved using information technologies to track customer purchases, instituting loyalty programs, and lowering prices and/or finding market niches that larger stores do not fill. Yen, H. 2014. Campbell Collaboration. Worker and social equity in food and agriculture. Consumer expenditure survey. 2014b. In addition, psychosocial factors, such as work-related stress and shift work, are important considerations for these employees. The persistence of family farms in United States agriculture. Food waste or food loss is food that is discarded or lost uneaten. Nord, M. 2009. Stofferahn, C. 2006. Mindless eating: The 200 daily food decisions we overlook. Decisions by retail firms to demand certification of the use of sustainable production and business practices from their suppliers has become one of the most significant drivers of change in the modern U.S. food system. 1989. EIB-80. There are several different food access issues: a lack of supermarkets in low-income areas; a lack of transportation to supermarkets or superstores; and an abundance of smaller stores, which charge higher prices and carry few healthy foods (Ver Ploeg et al., 2009). U.S. GAO (U.S. Government Accountability Office). Determining the social and economic effects of the food system should involve the use of valid and reliable data measured at the necessary scale (e.g., national, regional, or local). It was great that every one of the church of God members who Church of God members really You are fantastic. The largest and most technically sophisticated farming operations provide an increasingly large share of the nations output, and they are better equipped to meet the demands of first line handlers and processors (as transaction costs are lower when larger volumes of consistent quality product can be acquired from fewer producers). The skill level in this sector is relatively low except for management and a few very skilled chefs. http://www.ams.usda.gov/AMSv1.0/getfile?dDocName=STELPRDC5105706 (accessed November 24, 2014). Industrial Relations 49(3):429-456. Questions about the ability of organic agriculture to produce comparable food yields have persisted for many years. Firms are ranked by total revenue, and profitability also is reported (Fortune magazine, 2014). Practices at the 100 largest and most influential U.S. companies. IFIC (International Food Information Council Foundation). From randomized controlled trials to evidence grading schemes: Current state of evidence-based practice in social sciences. The costs of producing, processing, and transporting food to consumers. This ensures our people on the front lines are thinking about these issues. Census statistics report that U.S. food manufacturing establishments had an average of 2,661 employees per establishment (plant), with a payroll per employee of $53,090 in 2011. How we produce and consume food has a bigger impact on Americans' well-being than any other human activity. A report for Oxfam America. Briefing paper 12. http://www.bread.org/institute/papers/farm-workers-and-immigration.pdf (accessed November 24, 2014). One environmental issue that is affecting producers and consumers alike is the diminished quantity and quality of water. Causes and Effects of Food Insecurity Poverty. POTENTIAL SOCIAL AND ECONOMIC EFFECTS ON THE FOOD PRODUCTION SECTOR Income, Wealth, and Distributional Equity The food production sector includes farmers, ranchers, fishers, hired workers, their family members, and residents in the communities in which these individuals reside (primarily, but not exclusively, rural or small town). Off-farm income, technology adaptation, and farm income performance. The average farmworker in California makes about $10 an hour, according toEconomic Policy Institute, although they typically arent employed in agriculture year-round as many farm jobs are seasonal. of the social and economic impacts of the food system on key sectors of the food system. Poverty, legal status, and pay basis: The case of U.S. agriculture. Martin, P. 2009. Meanwhile, obesity and chronic diseases are increasing across the world because of people eating too much of the wrong foods. http://www.farmworkerjustice.org/sites/default/files/documents/6.3.a.1State_Workers_Comp_Information_for_Health_Centers_11-09.pdf (accessed February 10, 2014). Medford, MA: Tufts University Press. In this section, we highlight some of the differences in social and economic outcomes for participants in each of the major post-farming subsectors of the U.S. food supply chain. Brown, J. L., D. Shepard, T. Martin, and J. Orwat. Health Affairs (Millwood) 30(10):1880-1887. As a result, the wine industry has had various positive and negative impacts on the world. The food processing and manufacturing sector ships about 14 percent of the value shipped by all U.S. manufacturing plants (ERS, 2014c). One measure of how the U.S. food system serves the needs of consumers is the rate of change in food prices and the percentage of income required to purchase food. The Fortune 500 is an annual list of the top 500 publicly traded companies registered in the United States with U.S. operations. The use of synthetic pesticides in nonorganic systemsto control or kill potential disease-causing organismspose a number of concerns for environmental health, including water quality impairment by pesticides in 90 percent of water bodies in the United States, in 80 percent of the fish that have been studied, and in 33 percent of major aquifers (U.S. However, in the case of agricultural input suppliers, farmers are willing to pay higher prices if doing so results in greater yields on crops and livestock or results in higher prices for better quality output. Schnepf, R. 2013. Food production, processing, and availability also can affect community-level measures, such as economic growth and social infrastructure. Food prices change frequently for a number of reasons. Public investments in basic and applied research throughout most of the 20th century have provided high rates of economic return to taxpayers and undergirded a period of rapid technological change and increases in productivity (Fuglie and Heisey, 2007; Kinsey, 2013). Information on food producers is available from USDA surveys and Agricultural Census Data. Wealth, farm programs, and health insurance. Competition was fierce and the structure of the retail industry began to bifurcate into big companies with generally lower priced goods and companies specializing in smaller stores with specialty products and services at higher prices. According to data from the U.S. Department of Health and Human Services Health Professional Shortage Areas, 17 percent of the farm population resides in shortage areas for primary care access (HRSA, 2014; Jones et al., 2009a). Feeding America. FIGURE 5-8 Number of U.S. food industry employees. Also in this sector are institutional food service establishments such as schools, hospitals, prisons, food (soup) kitchens, and Meals on Wheels. Findeis, J. L., A. M. Vandeman, J. M. Larson, and J. L. Runyan. King, and D. Schimmelfennig. FIGURE 5-6 Source of health insurance coverage for farm and U.S. persons. SOURCE: ERS, 2014i. 2005. Production facilities: Production is where raw materials are converted into final products for the market. 2014h. This sector is critical to the availability of food in remote areas and in cities far from production location. Washington, DC: U.S. Department of Agriculture, Economic Research Service. U.S. "There are complexities within coffee farming we cant often control or influence," said Andi Trindle Mersch, director of coffee and sustainability atPhilz Coffee. For example, the rapid rise of the corn ethanol market in the 2000s could result in significant gains for corn-producing areas but also drive up costs of production and reduced profitability in livestock production regions that had used corn as a major feed source. The use of precision agriculture techniques can save producers some variable input costs and potentially reduce environmental damage, though rates of adoption have been slower than anticipated (Schimmelpfennig and Ebel, 2011). (Does not apply to non-American citizens.). McGranahan, D., and P. Sullivan. Working conditions (hours, benefits, turnover, safety), Entrepreneurship/managerial control (contracting, debt, vertical integration), Economic power (citizenship status, unionization), Occupational injury rates (nonfatal and fatal), Food quality (taste, healthfulness, convenience, sustainability traits). EIB-88. NOTE: 1 = Total population; 2 = Lowest income quintile; 3 = 2nd income quintile; 4 = 3rd income quintile; 5 = 4th income quintile; 6 = Highest income quintile. Immigration and meatpacking in the Midwest. Retraining the U.S. palate to expect and accept foods and beverages with less salt and sugar is under way by many food companies, but it progresses slowly (Kinsey, 2013). http://www.und.edu/org/ndrural/Lobao%20&%20Stofferahn.pdf (accessed November 24, 2014). As the population in America grew, increased meat production began, starting in the 1930s and 40s with poultry. http://www.ers.usda.gov/data-products/agricultural-productivity-in-the-us.aspx#.U_-SjWPkpQB (accessed November 24, 2014). More recent research has found that in many places around the United States, low-income urban neighborhoods have more grocery stores, supermarkets, and full-service restaurants, along with more fast food restaurants and convenience stores, than do affluent areas (Lee, 2012). "Positive social impact means the equitable distribution of risk and reward," said Rada Dogandjieva, senior agriculture programs manager at Clif Bar. It substantially increased in 2007-2008 as the recession started and has been essentially unchanged since then. Because many workers on U.S. farms are unpaid family members of farm operators, it is difficult to determine the exact number of people involved in production agriculture. A recognition of health and nutrition factors in food demand analysis. Farmers use of marketing and production contracts. Increasing homogeneity in global food supplies and the implications for food security. Waste & Resources Action Programme (WRAP) estimates that the portion of food waste which can be avoided represents an average economic cost of USD 665 per household per year. 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